Leading direct marketers contact their customers many times during a season and often use multiple contact media. Often, however, decisions about which customers to contact for each campaign are made in isolation.

Database Marketing is most fundamentally customer oriented marketing. Marketers should look at the sequence of contacts they make with a customer through the customer’s eyes and strive to find the best combination of contacts for each customer. That is done by:

  • Estimating and testing the strength of interactions (“cannibalizations”) among contacts.
  • Evaluating alternative seasonal strategies for each customer with respect to the expected revenue and profit they will generate.

Implementing this approach uses model predictions, testing results and optimization software.

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